Wesiwe shareholders give Chinese-funded transaction the thumbs up

Wesiwe shareholders give Chinese-funded transaction the thumbs up 
JOHANNESBURG (miningweekly.com) − Shareholders of JSE-listed Wesizwe Platinum gave their approval at an annual general meeting in Johannesburg on Wednesday to a transaction agreement with Chinese funders, which the company said would open the way for the full-scale construction of its 350 000 oz/y Frisch-Ledig project. It would now work to iron out the other legal and regulatory conditions precedent.

The meeting followed the withdrawal of an urgent application to prevent the company’s yearly meeting, which was sought when a conflict arose around who had the right to vote the Bakubung Community Development Corporation and Newshelf 925 shares.

But Micawber, which was established to enhance Wesizwe black economic-empowerment participation, would now subscribe for 97,4-million shares, which constitutes 6% of Wesizwe’s shareholding, through funding provided by the consortium.

However, beneficiaries would have to remain invested in Wesizwe until such time that there were no prescriptive levels of BEE participation in South Africa’s mining industry, as this had been a major headache for Wesizwe in the past.

Voting rights would be managed through three trustees and not the beneficiaries.

The approved transaction would see the company receive an equity injection of $227-million, through Jinchaun and the China Africa Development Fund subscribing for 732,5-million Wesizwe shares, which constitutes 45% of the company’s diluted share capital.

CEO Arthur Mashiatshidi said that the company would now focus on ensuring that remaining conditions to the transaction were successfully achieved to enable it to start full-scale construction at its flagship Frisch-Ledig project.

Other conditions included the approval of the South African competition authorities, as well as all necessary Chinese regulatory approvals having been obtained by Jinchuan and CADFund.